Canadian Shield Commences Gold Exploration at Trol Project, Chile
July 15 2010 - 8:30AM
Marketwired
Canadian Shield Resources Ltd. (TSX VENTURE: EXP) ("Canadian
Shield" or the "Company") is pleased to announce the acquisition of
additional property and commencement of its gold exploration
program at the Trol Project, located in the 9th Region of southern
Chile.
From 2007, the Company controlled a 100 hectare license,
centered on outcropping bedrock gold mineralization within the
Madre de Dios placer gold district. The area contains significant
gold mineralization, with historic drill intercepts up to 112 m @
1.12 g/t gold, as identified and reported by Minera Cominco
Resources Chile Ltda. ("Minera Cominco"). The area of historic
drilling covers approximately 400 meter of strike and occurs within
a 2,600 meter long by 400 meter wide soil gold anomaly. Canadian
Shield has recently submitted applications for 8 additional claims
covering 2,200 hectares of land surrounding the initial license.
The applications have been accepted and the claims are reserved for
the Company, pending formal award by a Federal court. The addition
of these eight claims with the central 100 hectare property now
makes Trol a viable gold exploration project.
LOCATION, ACCESS & EXPLORATION HISTORY: The Trol property
and the Madre de Dios gold placer district are located on the west
flank of Cordillera Trolitralahue, approximately 55 km northeast of
the capital city of Valdivia. The district has excellent road
access and infrastructure, with paved roads to within 5 km of the
property. The Madre de Dios gold placer district was discovered in
1566 by Spanish explorers. Total production is not known, however
recorded production from 1898-1936 was approximately 83,600 ounces.
Outcropping bedrock gold mineralization was discovered by Amax
Exploration ("Amax") programs during 1982-84. The property contains
thick vegetation which has hindered bedrock exploration. The Trol
prospect was initially explored by a Joint Venture between Amax and
Shell Minerals ("Shell"), which resulted in drilling seven core
holes. Minera Cominco explored the property in 1991-92 and drilled
three additional reverse circulation drill holes. Based on surface
rock samples and 10 drill holes, Minera Cominco prepared an
historic estimate of the gold resource based on exploration data
(not compliant with NI-43-101 regulations). The property was
optioned to Pegasus in 1993-94 and they conducted an extensive
regional exploration program, including 46 drill holes. The
property was later dropped and the 100 hectare central claim was
acquired by Anderson Peru Mining and Exploration S.A.C. ("APMX").
APMX conducted extensive soil sample panning surveys, which
identified an extensive region containing visible gold flakes in
the soil. Interpreted observations identified up to 48 flakes of
gold per sample. Results of this work indicate potential
mineralized zones are discontinuous but extend at least 1,500
meters northeast and 700 meters southwest from the area of historic
drilling, for a total area measuring approximately 2,600 meters
northeast by 400 meters wide. Canadian Shield acquired the property
through its acquisition of APMX in 2007.
GEOLOGY AND GOLD MINERALIZATION: Gold mineralization occurs
within a sequence of complex, low-angle and high-angle shear zones
and faults, hosted within Carboniferous-age, metamorphosed volcanic
and sedimentary rocks. Most rocks have been metamorphosed to
variably micaceous schists. The host rocks are part of the Western
Metamorphic Series of the Central Coast Range and contain three
episodes of intrusions. Historic reports by Minera Cominco indicate
gold mineralization occurs as free gold, associated with graphitic
mica (muscovite) and quartz schists. The mineralized schists occur
with an 80-100 meter thick, flat-lying shear zone, which has been
traced 300 meters along strike and 250 meters down dip. Surface
rock sampling identified gold values ranging from 1-25.5 g/t gold
in the vicinity called Pique Magico. Historic drilling by the
Shell/Amax Joint Venture, and subsequent drilling by Minera
Cominco, is summarized in the following table, with drill hole
locations combined with surface rock gold assays, shown on the
attached map. The Company believes that the historic results are
reliable and relevant, and is planning a program of independent
verification and field follow-up. Taken together, these drill
results and surface rock gold assays define a northerly trending
gold zone that remains open for additional expansion with drilling
along strike in each direction, and down dip.
----------------------------------------------------------------------------
Gold
Drill From To Interval Assay Hole Drill
Company Year Hole (m) (m) (m) (g/t) Depth Type
----------------------------------------------------------------------------
Shell/Amax JV 1986 DTL-1 NSV 104.45 Core
----------------------------------------------------------------------------
Shell/Amax JV 1986 DTL-2 96.0 101.8 5.8 0.50 101.80 Core
----------------------------------------------------------------------------
Shell/Amax JV 1986 DTL-3 18.0 34.0 16.0 0.33 155.31
----------------------------------------------------------------------------
44.0 112.0 68.0 0.90
----------------------------------------------------------------------------
inc. 62.0 74.0 12.0 1.53
----------------------------------------------------------------------------
Shell/Amax JV 1986 DTL-4 36.0 52.0 16.0 0.56 170.00 Core
----------------------------------------------------------------------------
56.0 74.0 18.0 0.77
----------------------------------------------------------------------------
90.0 106.0 16.0 0.32
----------------------------------------------------------------------------
108.0 136.0 28.0 1.22
----------------------------------------------------------------------------
inc. 128.0 132.0 4.0 6.10
----------------------------------------------------------------------------
148.0 156.0 8.0 0.54
----------------------------------------------------------------------------
162.0 168.0 6.0 0.55
----------------------------------------------------------------------------
Shell/Amax JV 1986 DTL-5 0.0 10.0 10.0 0.69 80.53 Core
----------------------------------------------------------------------------
20.0 34.0 14.0 1.54
----------------------------------------------------------------------------
inc. 22.0 28.0 6.0 3.00
----------------------------------------------------------------------------
44.0 50.0 6.0 0.92
----------------------------------------------------------------------------
Shell/Amax JV 1986 DTL-6 18.0 26.0 8.0 0.38 140.77 Core
----------------------------------------------------------------------------
30.0 38.0 8.0 0.45
----------------------------------------------------------------------------
Shell/Amax JV 1986 DTL-7 NSV 81.30 Core
----------------------------------------------------------------------------
Cominco 1992 CCL-1 37.0 149.0 112.0 1.12 152.00 RVC
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cominco 1992 CCL-2 50.0 55.0 5.0 0.48 200.00 RVC
----------------------------------------------------------------------------
66.0 99.0 33.0 1.42
----------------------------------------------------------------------------
151.0 157.0 6.0 0.61
----------------------------------------------------------------------------
Cominco 1992 CCL-3 111.0 128.0 17.0 0.22 250.00 RVC
----------------------------------------------------------------------------
139.0 175.0 36.0 0.28
----------------------------------------------------------------------------
HISTORIC MINERAL RESOURCE ESTIMATE: Based on these drill
results, and additional surface rock sampling from trenches,
outcrops and tunnels driven into the mineralized zone, Minera
Cominco Resources Chile Ltda. prepared a "preliminary geological
gold resource estimate" in 1992. Minera Cominco's historic resource
estimate does not utilize classifications included in National
Instrument 43-101 of the Canadian Securities Administrators, and is
not compliant with NI 43-101. Cominco estimated a minimum
geological gold resource of 6.25 million tonnes with an average
grade of 0.72 g/t gold, which equates to approximately 144,700
ounces of contained gold, using a minimum 0.5 g/t low grade cutoff.
The historic resource estimate is included in a report titled
"Llipe Project Final Report, Summer 1992 Campaign and Exploration
Possibilities for Stratiform Gold in the Metamorphic Basement of
Southern Chile Coastal Belt" by John Davidson, April 15, 1992. The
reputation of the Minera Cominco staff that prepared the historic
estimate is generally of a high quality. The Company considers this
historic estimate to be relevant, and a preliminary indication of
the potential gold resources present on the property. A qualified
person has not performed sufficient work to classify the historic
estimate as current mineral resources, and Canadian Shield is not
treating the estimate as current mineral resources. The historic
estimate should not be relied upon until it can be confirmed by the
Company. The Company will seek to confirm this data with future
exploration and drilling. No additional historic resource estimates
have been prepared to the knowledge of the Company.
To view the figure associated with this press release, please
visit the following link:
http://media3.marketwire.com/docs/exp0715fig1.pdf.
EXPLORATION PROGRAM: The Company's exploration program will
include independent sampling to verify the historic exploration
results and an initial detailed stream sediment geochemical survey
to confirm the regional distribution of gold on this 23 square
kilometer property. Systematic soil surveys will be initiated
within the 2,600 meter long soil anomaly identified by APMX, to
confirm and further evaluate the distribution of gold in the soils.
Soil results will be followed up with trenching, and possibly with
ground geophysics, prior to selecting drill targets.
COMMENTS ON HISTORIC EXPLORATION RESULTS: Drill intervals are
down-hole thicknesses, not necessarily true thicknesses. The drill
intervals were calculated using a minimum width of four meters,
containing a weighted average gold content greater than 0.2 g/t.
Only one internal or adjacent assay interval of material containing
less than 0.2 g/t gold were included in these calculations.
Canadian Shield does not possess the actual assay certificates
however assay data was extracted from historic company reports. A
Qualified Person has not verified the data contained in the results
from historic work reported here, but this work is considered to be
reliable and relevant. Canadian Shield has no duplicate or
confirmation samples, and is relying on the data and practices
conducted by the professional geologists at Amax, Shell, Minera
Cominco and APMX. The Company noted one area of concern, as it
appears that initial gold assays conducted by Amax/Shell were
conducted using the Atomic Absorption method, which is generally
less reliable than Fire Assay and tends to under-estimate total
gold content. However, at the time of the exploration program, this
practice was considered reasonable. Canadian Shield has acquired a
portion of the historic exploration data and it is seeking to
locate additional remaining data.
About Canadian Shield Resources Ltd. (TSX VENTURE: EXP) Canadian
Shield is a precious metals exploration and development company
focused on strategically-located properties in Peru and Chile.
Canadian Shield has seven precious metal exploration projects in
Peru and one in Chile. Mr. Keith A. Laskowski, MSc., is a Qualified
Person for the purposes of National Instrument 43-101 Standards of
Disclosure for Mineral Projects of the Canadian Securities
Administrators, and has prepared, reviewed and verified the
technical information contained in this news release. The Company's
shares are listed on the TSX Venture Exchange (Trading Symbol TSX
VENTURE: EXP). Further information is available at Canadian
Shield's website: www.canadianshieldresources.com. The Shareholders
recently approved a name change of the Company to Estrella Gold
Corporation, which is expected to become effective August 1,
2010.
On behalf of the Board of Directors
Keith A. Laskowski, President and Director
STATEMENTS IN THIS NEWS RELEASE, OTHER THAN PURELY HISTORICAL
INFORMATION, INCLUDING STATEMENTS RELATING TO THE COMPANY'S FUTURE
PLANS AND OBJECTIVES OR EXPECTED RESULTS, MAY INCLUDE
FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS ARE BASED ON
NUMEROUS ASSUMPTIONS AND ARE SUBJECT TO ALL OF THE RISKS AND
UNCERTAINTIES INHERENT IN RESOURCE EXPLORATION AND DEVELOPMENT. AS
A RESULT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED
IN THE FORWARD-LOOKING STATEMENTS.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
Contacts: Canadian Shield Resources Ltd. Keith Laskowski MSc.
President Direct Tel: (800) 362-2040 or (720) 272-6224 (416)
927-1222 (FAX) klaskowski@canadianshieldresources.com
www.canadianshieldresources.com Investor Contact: First Canadian
Capital Dan Boase Partner (416) 742-5600 x 232 (416) 742-6410 (FAX)
dboase@firstcanadiancapital.com www.firstcanadiancapital.com
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